Kalyan Jewellers: Kalyan Jewellers Q4 results: Net profit jumps 54% to Rs 73.91 crore
The total revenue for the quarter was Rs 3056.6 crore as compared to the revenue of Rs 2140.7 crore for the same quarter in the previous year, a growth of 42.78 per cent. The consolidated PAT for H2 FY20-21 was recorded at Rs 206.7 crore, a 72.3 per cent growth over the same period last year.
The reasons for the revenue growth in the India operations were mainly because of the accelerated shift within the jewellery industry from unorganized to organized players and the resilient weddings and related demand. The revenue growth of the gold division was 69.6 per cent and that of the studded division was 36.6 per cent. The disproportionate increase in gold revenues led to an overall decline in the gross margins percentage in Q4 FY2021.
The total revenue for the year ending March 2020-21 was Rs 8573.3 crores against the total revenue of Rs 10,100.9 Crores in the corresponding period last year, a decline of 15.1 per cent compared to the previous year. However, the revenue decline of the India operations was considerably lower at just 6.6 per cent, a release issued by the company said.
Backed by a strong revenue growth in Q4, the company recorded Profit Before Tax (PBT) of Rs 98.5 crore compared to Rs 67 crores in the previous year, a growth of 46.9 per cent for the quarter. The Company reported EBITDA of Rs 227.7 crore for the quarter compared to Rs 179.6 crores in the previous year.
The H2 PBT was Rs 263.2 crores, when compared to Rs 174.2 crores in the previous year, a 51.1 per cent growth for the half year. The EBITDA for the H2 was Rs 538.8 crore compared to Rs 427.5 crores in the previous year, a 26 per cent growth for the half year.
For the full year ended March 2021, the Kalyan Jewellers India operations recorded profit before tax (PBT) of Rs 187.5 crores compared to Rs 235.3 crores in the previous year. However, the company posted a loss in its consolidated balance sheet amounting to Rs 6.1 crores. This is primarily because of a one-time write off in the Middle East business due to Covid-19 amounting to approximately Rs 100 crore and the revenue loss in Q1 due to the global lockdown.
Candere, the Company’s e-commerce business, performed well with a revenue growth of 66 per cent in Q4 FY20-21. The revenue for FY20-21 was Rs 82.1 crore, a growth of 47 per cent and the net profit was Rs 3.2 crores, compared to previous year loss of Rs 1.7 crore.
Mr. Ramesh Kalyanaraman, executive director of the Company said, “The past year has been unprecedented in many ways. FY2020-21 began with a severe dislocation as our entire store network was temporarily shut down given the global pandemic. However, the company was able to make a strong recovery in the following months, thanks to the team work of our employees and proactive customer engagement initiatives undertaken. The company had already reached a stage where the operating leverage had started kicking in. Adding to this, the robust revenue growth in the second half of the year especially in Q4 enabled us to achieve 72.3 per cent growth in H2 FY2021 PAT which is in fact 45.3 per cent more than the full year PAT of the previous year.”
“Today, approximately 80 per cent of store networks in India are closed due to state imposed restrictions, and the on-ground situation is likely to remain fluid over the next few weeks. Given the strength and scale of our business, leaner cost structure, systems and processes institutionalized to deal with this kind of dislocation based on the previous year’s experience and the additional strength of our balance sheet after our recent IPO, we are well equipped to handle the near term shifting realities of the market and remain well positioned for the long term,” he added.
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